Transaction Levy (Ontario firms) – I m entering a transaction levy. What amount and GST code should I use?
If the matter was opened on or after January 1, 1999, enter $50.00 as the amount. This is the amount charged before taxes. Use a GST code of N to indicate that there is no GST Input Tax Credit included in the $50.00. $50.00 will be added to the Client Ledger. When the levy is billed, the client will be charged $3.50 GST on top of the $50.00. If the matter was opened prior to January 1, 1999, use $50.00 as the amount and a GST code is Y. This indicates that there is a GST Input Tax Credit included in the $50.00. PCLaw puts the amount of $46.96 on the Client Ledger. When the levy is billed, the client will be charged $3.29 GST on top of the $46.96. PCLaw automatically uses the correct amount and GST code based on the Opening Date of the matter. After entering the matter nickname and pressing TAB, the amount and GST code are updated.
